ReturnToWorkSA

In reply to Mr MARSHALL (Dunstan—Leader of the Opposition) (22 July 2015). (Estimates Committee A)

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Housing and Urban Development, Minister for Industrial Relations, Minister for Child Protection Reform): I have been provided the following advice:

The administration fee paid by self-insured employers in the 2014-15 financial year was $16.022 million, being $7.837 from the private sector self-insurers and $8.185 from the Crown self-insurers.

Calculation of fee

Self-insurers pay the fee pursuant to section 146 of the Return to Work Act 2014. This section requires that the self-insurers pay a fair contribution towards:

the administrative costs of the Corporation

the cost of rehabilitation funding

the cost of the system of dispute resolution

the cost of the administration of part A (independent medical advisers)

actual and prospective liabilities relating to insolvency.

The percentage rates are determined by analysis of the Corporation's administrative budget under the principles of activity based costing to determine what percentage of each budget element self-insurers should pay.

The Crown element does not contain any component relating to insolvency whereas the private sector fee rate includes a 1% contribution toward insolvency which is applied to any employer that has been a self-insurer for less than ten years.